The IBJR (Brazilian Institute for Responsible Gaming) stated that the Finance Minister, Fernando Haddad, downplays the importance of tax revenue from the betting sector in Brazil.
“The minister’s perspective shifts attention away from the real issue: tax evasion in the illegal market, which dominates 51% of the sector and causes an annual loss of R$10 billion (US$1.8bn) to the country. Statements that downplay the importance of the regulated environment create legal uncertainty, discourage investment, and, in practice, strengthen the illegal operations that the government should be combating,” the organization said in a statement.
The institute said the minister’s remarks fail to consider the financial results already achieved through the regulation of betting in 2025. It emphasized that the federal government has received R$2.3 billion (US$415m) in licensing fees from authorized companies since the start of regulation.
The IBJR argues that the focus should be on the illegal betting market, which accounts for 51% of the sector and causes annual losses of R$10 billion (US$1.8bn) due to tax evasion.
On Tuesday (22) this week, Haddad described betting as a “public health problem” and said the sector “has become a plague.”
He made the comments during an event at the ICL (Institute of Citizenship and Leadership). The minister promised to present President Luiz Inácio Lula da Silva (PT) with a report on the functioning of the regulated market, emphasizing the need to demonstrate that betting represents “the path to failure.”
Read the full statement from IBJR:
The Brazilian Institute for Responsible Gaming expresses astonishment at the statements made by Minister Fernando Haddad, who minimizes the tax revenue from the betting sector. His comments ignore the fact that the Federal Government has already received over R$2.3 billion (US$415m) in licensing fees from authorized companies, in addition to R$3.026 billion (US$545m) in tax and social contributions between January and May 2025 alone, according to the Federal Revenue Service.
This amount could reach R$10 billion (US$1.8bn) by the end of this first year of sector regulation, according to projections from LCA Economic Consulting — funds that are allocated to strategic areas such as Health, Public Security, Sports, and Education.
The minister’s view diverts attention from the real problem: tax evasion in the illegal market, which controls 51% of the sector and causes an annual loss of R$10 billion (US$1.8bn) to the country.
Statements that devalue the importance of the regulated environment generate legal uncertainty, discourage investment, and, in practice, empower the illegal operations the government should be fighting.
The IBJR reaffirms its commitment to Brazil in building a transparent market that generates jobs and revenue while offering greater protection to bettors. To achieve this, collaboration between the public sector and private companies is essential.
Association of Bets and Fantasy Sports: Haddad aims to misinformation and works against the economy
The ABFS (Association of Bets and Fantasy Sport) also released a statement criticizing Finance Minister Fernando Haddad. The entity argues that the minister's statements about the regulated betting market in Brazil contradict the very regulatory process led by the SPA (Secretariat of Prizes and Betting).
According to the organization, the remarks — “lacking technical basis” — reveal Haddad’s lack of commitment to the sector.
“More concerning than the lack of knowledge about a legalized market, approved by Congress and regulated by the minister’s own department, is witnessing a public figure from the government using reputable companies as scapegoats for the country’s political and economic challenges,” the statement reads.
One of the main points of disagreement, according to ABFS, refers to the claim allegedly supported by the minister that betting operators receive up to R$30 billion (US$5.4bn) per month from clients, according to the Central Bank. The association explains that this figure represents the total volume wagered, not the amount lost by bettors.
According to the statement, ordinance 1.207 of 2024 requires operators to return at least 85% of the amounts wagered to users. Based on this rule, the association calculates that approximately R$25.5 billion (US$4.6bn) is returned to bettors monthly. This would result in net losses of around R$4.5 billion (US$810m).
“This type of maneuver creates a dangerous precedent, especially during a time of growing electoral tension: attacking a legal sector is not only irresponsible, but also undermines legal and business certainty, while diverting attention from the urgent need for administrative reform. Today, betting operators are the target; tomorrow, it could be any other sector,” the organization states.
Read the full ABFS note:
The statements made by Finance Minister Fernando Haddad to the ICL are surprising and reveal a lack of commitment from his leadership to the regulated betting market — a sector that is regulated under his own administration. The Minister has repeatedly made comments lacking technical basis, aligning himself with narratives pushed by groups opposed to regulation. Worse yet, he appears disconnected from the serious and competent work being carried out by the Ministry’s own Secretariat of Prizes and Betting (SPA).
Without technical or factual support, the Minister endorsed the fanciful figure of 10 million Brazilians showing signs of gambling addiction and accepted as truth the claim that R$30 billion is supposedly “lost” each month — a clearly distorted figure that ignores the amounts returned to users in winnings.
The R$30 billion (US$5.4bn) refers to the total volume wagered, not to losses. According to the regulatory obligation imposed by the Ministry of Finance itself, there is a mandated minimum return to bettors of 85% of the amount wagered (Annex I, item 28, of SPA/MF Ordinance 1207/24). Thus, at least R$25.5 billion (US$4.6bn) is returned monthly to bettors. In other words, net losses would not exceed R$4.5 billion (US$810m), a number entirely ignored in such narratives.
Even more concerning than the lack of understanding of a legalized market — approved by Congress and regulated by the Ministry itself — is seeing a public government figure scapegoating legitimate companies for the country’s political and economic difficulties.
This type of maneuver sets a dangerous precedent, especially in times of heightened electoral tensions: attacking a legal sector is not only reckless, it also undermines legal and business certainty, while distracting from the need for an administrative reform. Today it’s betting companies under attack; tomorrow, it could be any other sector.
In just six months of operation, the regulated market has already paid over R$4.5 billion (US$810m) to public coffers through license fees, taxes, and regulatory charges. Yet, the Ministry has not disclosed how much of this revenue has been allocated to social areas like health and education, or toward combating the illegal market. This lack of transparency cannot be unfairly blamed on the betting companies.
It is important to emphasize that the Secretariat of Prizes and Betting— composed of dedicated professionals and qualified technicians — has been striving to regulate and oversee the sector, despite facing serious limitations in staffing, budget, and infrastructure. The Government’s neglect in this regard is both technical and political and does not reflect the dedication and seriousness of the SPA team.
The criticism of alleged facilitation of money laundering also appears misguided and fails to recognize the work of the Ministry’s own staff. Brazilian regulations follow high international standards, requiring taxpayer ID (CPF), facial identification, Know Your Customer (KYC) processes, transaction traceability, and robust financial crime prevention protocols — all established under the SPA’s supervision and with support from the Financial Intelligence Unit (Coaf). Claiming that the regulated sector facilitates money laundering is unfair and disrespects the efforts of the professionals who developed and enforce these rules.
The narrative war against betting companies has already surpassed rational debate. Some economic sectors are trying to vilify gambling, relying on questionable and distorted information to delegitimize a market that contributes significantly to tax revenues — and which, if properly managed, could help the country face fiscal challenges responsibly and transparently.
If the Minister does not trust the data, he should verify it. If he does not understand the sector, he should become informed. But it is unacceptable for the country’s top economic authority to treat a regulated market with the same lack of preparation used to fight the illegal one — especially while ignoring and undermining the technical and serious efforts of the Prizes and Betting Secretariat’s professionals.
Source: GMB
